Posts Tagged ‘First Time Home’

Market Update – “First Time Home Buying Secrets” Kenns New Book

This young couple recently purchased their first home in Beavercreek OH. They share their experience of home buying with Cyndi Shurts of REMAX VICTORY at the Greene, their agent. While shopping online for Dayton real estate, they came across MiamiValleyDreamHomes.com and registered. Two hours later they began communicating with Cyndi via email. If you are considering purchasing a home in the Dayton Ohio area, contact the realtor team of Don & Cyndi Shurts. Call Cyndi at 937-604-5194.

This is intended to be a bit of a primer for the first-time home buyer. Buying a home is a huge decision and not an easy one to make the first time. The home purchase process can be fraught with pitfalls that a new buyer may never see coming, so proper planning and prep is essential. Let’s try breaking this process up into 3 parts; financial, shopping and moving. Let’s also look at each in turn and see if we can’t figure out a good set of steps to follow that can guide a new buyer to a successful home purchase.

Financial – Financially speaking this is going to be huge. Unlike anything you have ever done actually. Buying a home is something that will directly involve every last aspect of your financial life and is based entirely on your credit score. If you are unsure what yours is then now is the time to find out. There could be things affecting your score that may keep you from getting a mortgage and those will need to be cleared up immediately. Then you will need a fully pre-approved mortgage so that you can begin the second step.

Shopping – This is the fun step as you now get to go out and shop for homes. Yes, you get to be the finicky buyer!Now, be careful in your shopping, remember you will have a set amount of money to be working with and setting your standards too high may result in disappointment. Be reasonable about what you actually need. And don’t bet the whole lot on one home. This really is the fun part of the process so if you find something you like, make an offer!

Moving – It’ always best to start getting really for this step a long time beforehand as picking up an entire life and moving it any distance is time consuming and stressful and should be done with the utmost of care and planning. You will be fairly exhausted at this point but you may find that you are simply running on excitement, especially as the possession date grows closer. Pack by room and this will make it easier to set things up in the new home.

This list is pretty basic but it is something that you can use as the basis for a strong and informed home purchase. Make any changes to the process that you feel necessary after all this is your life and future that are on the line. As you go you can refine and change the list to suit your needs, just remember that this is a process with aspects that will not change.

Let me show you how to get $12,000 Free Government Grant from the US Government as little as 7 days.

Would you like to purchase your very own house? Purchasing a house has been the dream of millions of Americans. A lot of people are forced to rent accommodations through their hard earned money. All they’re doing is making the house payment for the homeowner. They will never be the owners of the property they rent, and they can never remodel it to suit their taste. We’re all aware of the current economic crisis that has struck the world. Though property prices have hit rock bottom, many people are still unable to realize their dreams of owning their own home.

Are you aware of the free cash grants program launched by the government? Yes, the government is helping people who are suffering from financial crisis today in setting up their own houses. The government offers grants money to first time home buyers. The money is meant to assist you in making the down payment for your home. So all hope is not lost. Even if you’re not a first time home buyer, there are grants that can be obtained to help you in purchasing your new home.

For home owners, the government is offering grants for repairing your old accommodation. Free cash grants are also available for those suffering from financial crisis to overcome all your financial liabilities.

There are many other grants programs that include grants for new home owners, senior citizens, minorities and many more.

Keep in mind, every government grant has set rules and requirements. So if you don’t qualify for one grant, it doesn’t necessarily mean you will not qualify for the others as well.

No longer is home buying out of your reach…
With free government grants, there’s a new horizon you can reach out for…

Click below to take advantage of government grants today

It is a sad sight when you see so many houses are being repossessed. Repos and foreclosures and more prevalent than ever before as a first time home buyers to make a few cardinal errors during the purchase process, that later lead to problems. One of the biggest mistakes people make with their finances is not entirely in order and arranged before you buy a house. Buying a house is a huge responsibility, both financial and otherwise, and not for those willingResponsibility is one of the biggest causes of evacuation and mortgage defaults.- Preapproval

Your credit is lavishly bound in the purchase of a property. In fact, your credit card will determine the amount you will be able to afford to lend on a house. Get in touch with your credit bureau and a copy of your report. This will detail your credit history and let everything that can adversely affect your mortgage application to discover. Outstanding credit problems, the dramaticthe amount you are entitled to borrow, so it’s a good idea to see one of those things. , Condemning them if necessary and receive approval letters from the debtors, allowing them to a potential creditor may show whether the debt is not paid yet you turned your report.- Preapproval

The next logical step is to secure the pre-approval from a mortgage lender to. This will take some careful shopping, the loan that’s right for you to find. There are so many different types of mortgages available it is worthwhile to taketo examine the time, not only the loan but the lender. Make sure you borrow from a lender that has a good reputation and a good track record. This is of crucial importance, because there are many fly-by-night lenders, the advantage of a borrower, not the benefit to do their homework. Make sure you ask about interest rates and whether they are fixed or variable. This can have a big impact on your monthly payments, so make sure READ MORE http://www.preapproval.pannipa.com/2009/09/20/smart-home-buying/

Closing costs, buydown points, prepayments — all the things first time home buyers might not be aware of in the purchase of a new home.

Buying your first home can be an exhilarating experience, but it can also be extremely stressful, especially if your mortgage company fails to keep you informed or help you through the buying process. Although the current housing market in Baltimore provides great opportunities for first-time home buyers–with FHA loans, tax credits, assistance for down payments and closing costs, and low interest rates–the numerous options associated with these opportunities can make first-time mortgages a confusing subject. Even as you take the first step of simply considering to purchase a home, we want to keep you informed, insuring that the mortgage process runs smoothly from start to finish. Some of the most important things to know up-front are the common misconceptions of first-time home buying.

Misconception #1: I can’t afford a home.

Income is certainly one of the factors that determines loan approval; however, that factor is primarily examined to determine that the first-time home owner will be able to make payments on the loan each month. In other words, Maryland mortgage companies are not concerned about whether a borrower is in the highest income bracket, but whether that borrower is seeking to live within his or her means. If you are “house hunting,” for example, searching for homes within a realistic budget should increase your chances of being approved for a loan. Keep in mind that you can usually deduct the interest and property taxes you pay on your home from your income taxes each April. In fact, the amount saved in taxes from owning a home often makes up some, if not all, of the difference in the cost of buying over renting. Buying beats renting in terms of establishing equity, as well: when you become a home owner, you typically build equity, meaning that the value of your home increases over time. Renting, on the other hand, only benefits the landlord.

In light of the recent extension of the first-time home buyer credit, there is even more incentive to purchase a home. Under the law, “an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010″ (according to the IRS website). Those who are eligible for the credit and purchase homes in 2010 can choose to claim the credit on their 2009 or 2010 tax return. For more information on the tax credit of up to $8,000 or ten percent of the purchase price, feel free to contact us. We will explain how you may be able to apply a portion of your tax credit to any closing costs.

Misconception #2: I can’t buy a home because I don’t have a large down payment:

Perhaps because large down payments were required for loan approvals in the past, this misconception is often the most common. If you are considering a first home mortgage, you may be eligible to receive an FHA (Federal Housing Administration) loan, the choice of many first-time home buyers because it typically only requires a minimum down payment of 3.5%. Under the recently announced FHA policy changes, FHA loan applicants must have a minimum FICO score (a specific type of credit score) of 580 to qualify for the 3.5% down payment. At our Baltimore mortgage company, however, there are many loan options for first mortgages, and we will be glad to walk you through those options if you would like more information.

Misconception #3: My credit isn’t good enough to pursue a first home mortgage.

Even potential buyers with the worst credit situations have to start somewhere, though first-time buyers with better credit scores will typically be presented with more options, lower interest rates and lower down payments. If you are considering applying for a loan and are concerned about your credit score, feel free to contact us with questions regarding your unique situation. We will gladly help you find the best loan option for you or, if necessary, establish a plan to repair your credit and achieve your goal of purchasing a home.

For help achieving your best possible credit score, evaluating which loan options are best for you, and free answers to your most pressing questions about first-time mortgages in Baltimore, Maryland, contact us online or by phone at 410-882-6633. We will keep you informed every step of the way as you move toward purchasing your first Maryland home!

Understanding what mortgages are and how they work can be mystifying for first-time homebuyers faced with the need to get financing to purchase their first home. Technically, the type of mortgage that home buyers use to get a loan to purchase a home is a contractual instrument that gives the lender, known as the “mortgagee”, an interest and certain rights in the property purchased by the borrower, or “mortgagor” (When it comes time for you to read and review the documents setting out your mortgage, the easy way to keep the terms straight is to remember that the “e” that ends “mortgagee” is the same “e” at the beginning of “lender”, while the “or” at the end of “mortgagor” is the same “or” at the beginning of “borrower”.)

Like many legal terms, such as lien or trespass, the word “mortgage” has its origins in the Law French that heralds back to the beginning of British (and American) common law. A “mortgage” – from the French “morte”, meaning death – was known as a “death pledge”. That is, when the debt was repaid the interest and rights of the mortgagee or lender in the borrower’s land or property expires, or dies. The mortgagor then has clear title without any rights, interests or “encumberances” remaining with the mortgagee.

Amortization, Interest Rate and Term

There are three main terms that will apply to all mortgages – the amortization period, the interest rate, and the term of the mortgage. The “amortization period” is the total amount of time (usually expressed in years) which it will take for the mortgagor to pay off his or her mortgage given the terms of the mortgage. The most typical amortization period when an individual is purchasing a home is 25 years, although longer amortization periods of up to 40 years have become more common and commercially available.

The “amortization period” is not to be confused with the “term” of a mortgage. Most usually a mortgage agreement will be for a specific number of years, but for less than the full amortization period. Formerly, the longest term available for mortgage financing was five years, However, some longer term mortgages of up to ten or even twenty-five years have now become available from some commercial lenders.

The difficulty with longer term mortgages, for both mortgagor and mortgagee (borrower and lender), is determining what is a fair and reasonable interest rate to be charged on the mortgage over the duration of such a long period of time. Interest rates fluctuate over time, and forecasting interest costs over an extended period is exceedingly difficult.

The interest rate is the percentage of interest that a lender will charge on an annual basis for the mortgage loan. On a $100,000 mortgage loan, a 5% interest rate would mean that the borrower is paying $5,000 per year in interest.

Mortgages payments are most often made in equal installments paid on a monthly basis over the term of the mortgage. Each monthly payment will go first towards paying the interest on the mortgage loan, and then towards paying off the principal, or outstanding balance, of the loan according to a fixed formula. As the principal of the loan is reduced, less money is owed in interest and consequently more of each payment goes towards paying off the interest.

Each mortgage payment is thus a blended payment, consisting of both an interest payment and a payment towards the mortgage principal. Because the principal amount (and thus the money owing under the mortgage) is reduced over time. the first payments during the term of the mortgage will go mostly towards paying interest, while a greater proportion of principal will be paid off in payments made at the end of the mortgage term.

Fixed-Rate and Variable-Rate Mortgages

Mortgages are also distinguished on the basis of how the interest rate is set. There are two main types of mortgages a fixed-rate mortgage and an open-rate or variable rate mortgage. Under a fixed-rate mortgage, the interest rate is specified for the entire term of the mortgage. Under an open-rate or variable mortgage, the interest rate will vary based on market conditions, usually specified in terms of the mortgagor bank or trust company’s prime lending rate.

Whether to choose a fixed-rate or variable rate mortgage is one of the biggest decisions facing the first-time homebuyer, and anyone seeking mortgage financing. If interest rates are relatively low historically speaking, the interest rates that fixed-rate mortgages are offered at will be higher than the rate offered for a variable rate mortgage. Here the bank or other lender assumes that rates are likely to go up, and charges a higher interest rate for a fixed-rate mortgage to assume that risk.

When interest rates are relatively high – say 9% to 10% – fixed-rate mortgages are typically offered at a lower rate than is being offered for variable rate mortgages. Here, the borrower is assuming the risk that interest rates will not go down from historically high levels. Consequently he or she can usually borrow money at a better fixed-rate than variable rate.

Open Mortgages versus Closed Mortgages

The other significant differentiation between mortgage types that will be of great interest to first time homebuyers is whether their mortgage is an open mortgage or a closed mortgage. An open mortgage can typically be paid off without penalty at any time durng the term of the mortgage without penalty. Under a closed mortgage, on the other hand, there will be a sometimes quite significant monetary penalty for paying off the mortgage before the term of the mortgage expires (although, a closed mortgage may allow for periodic lump sum payments that will go directly towards paying off the principal of the mortgage).

Open mortgages are most often preferable where the homebuyer wants to avoid being locked into his or her mortgage arrangements, thinks interest rates may decrease during the mortgage term or thinks he or she may be selling the mortgaged property before the expiration of the mortgage’s term. Closed mortgages are usually preferable where the homebuyer is operating on a tight budget and needs the security of knowing that mortgage payments will be unaffected by rising interest rates.

Refinancing

Following the expiration of the initial mortgage term, the remaining principal that is outstanding on the mortgage will have to be paid to the lender. This will usually entail refinancing a mortgage for a new term with the same or a different lender. Again, on refinancing the principle variables will be the amortization period, the interest rate and the term of the refinancing. The same considerations will also apply: fixed-rate versus variable rate, open mortgage versus closed mortgage.

Importantly, refinancing may also be available during the term of your mortgage. As your home’s principal is paid off your home equity – or the difference between what is owed on a home and its market value – increases. Mortgage refinancing is also generally available that will enable you to access that home equity through a second mortgage or line of credit secured against the equity in your home, even during the term of your first mortgage.

Your realtor, financial advisor or an independent mortgage broker should be able and willing to walk you through the different mortgages that are available to you, so that you can determine the mortgage product that is right for your circumstances – whether you are purchasing your first home or refinancing.

The First Time Home Buyers tax credit law was just recently extended through May 1, 2010.  The part of the new law that has been under-reported is that the new law extends tax credit to those who are veterans of home buying.

The first time home buyer tax credits basically remain the same as the one that was supposed to have expired November 30, 2009.  It provides first time home buyers with an eight thousand dollar tax credit on the purchase of a qualifying home.  The rules for repeat buyers are a little different-so read on to get the details.

Here is a quick review of the pertinent points of the Home Buyer Tax Credit for the first time home buyer:

Up to 10% tax credit on the purchase price of a new home-maxing out at $8,000.00 Must not have owned a home for at least the three years before the qualifying purchase. If a couple, both individuals must meet above criteria. They must live in the new home for three years as their principal residence. You cannot purchase the home from a parent, grandparent or your children. If your tax credit is above your tax liability, you may receive a refund check for the balance. (If you qualify for 8,000 dollar credit and your tax bill is 4,000, you may receive a refund in cash for the balance. Home purchase price is capped at $800,000.

The pertinent points for repeat home buyers:

Must have been living in one residence for five of the last eight years. The tax credit is up to 10% of the purchase price, but is capped at $6,500 for repeat buyers. Married couples modified income limit begins to phase out at $225,000 and is capped at $245,000. No retroactivity- Must purchase between November 6, 2009 and close before July 1, 2010 with a contract in hand before May 1, 2010.

To qualify for both first and repeat buyers credits you must provide proof of purchase-usually a HUD-1 form with your tax return. Your new home does not have to be a detached single family home, but you do have to live there as your principal dwelling-and proof of occupancy may be required if you get audited.

So for those of you who thought the gravy train of a large tax credit was over, this gives you new life to find that qualifying new home-go forth and do your part for the real estate community and buy a new home-but only buy what you can afford.  That tax credit will be of no benefit to you in a year or two if you are struggling to make your payment.  The F-word (foreclosure) is no fun, and that new home can become a burden instead of your new castle.

Developing a real estate marketing plan is a crucial element of selling properties. It is next to impossible for buyers to locate homes for sale without some type of marketing strategy. Whether trying to sell a residential home, commercial real estate or raw land, marketing is the key to selling success.

The first stage of real estate marketing is developing a plan. Taking time to create a plan allows sellers or real estate investors the opportunity to determine their target market and determine the needs of potential buyers.

Singles, married couples and families will have different needs than retired couples. Buyers of single dwelling homes have different requirements than investors purchasing commercial real estate. In order to sell properties it is imperative to gather as much information as possible about buyers.

One of the most common mistakes sellers make is focusing on their own achievements or successes of their real estate company. The number one rule of any marketing plan is to remove you from the equation.

While buyers might be impressed by the fact you have 20 years experience in selling real estate or have closed multi-million dollar deals, they really want to know how you are going to solve their problems or help them obtain what they want.

Real estate marketing materials must addresses how you can overcome challenges and problem-solve. This can be accomplished by making a list of common problems buyers face. Once potential problems have been identified, write out a list of how the service you offer can address each challenge.

Problem solving strategies might include educating buyers about available financing options for individuals who have filed bankruptcy or lost their home to foreclosure, or providing information about first time home buyer programs. Presenting strategies through real estate marketing materials allows sellers to build relationships and establish trust with potential buyers.

It is also important for investors and sellers to create follow-up marketing materials. Most people do not make important financial decisions based on information provided through a real estate website or marketing letters. Instead, sellers must focus on building relationships and invoke trust.

When real estate leads are established, sellers should plan on contacting buyers at least five to seven times. Doing so places your real estate marketing message in front of the buyer and builds confidence in the services offered.

Last, but not least, real estate marketing plans should address the various options available to sellers. These could include building a real estate website or blog; implementing online marketing strategies; sending out postcards, letters or flyers; and advertising via billboards, park benches, signage, or through Classified ads in local newspapers or real estate publications.

Unless selling a single piece of property, real estate marketing requires long-term commitment. Constantly changing technology allows sellers and real estate investors the opportunity to reach a broader audience.

The Internet is a good resource for locating real estate marketing advice. Sellers can join real estate clubs or participate in online investor forums or social networks to meet other realty professionals. Engage with members and ask questions to discover tricks of the trade. Taking time to network can help investors and sellers locate resources to develop strong marketing strategies and attract buyers.

Is it your first time buying a home? Well if it is you probably already know that it is a very scary thing to start to try to deal with. The main thing when buying a home is being prepared. You should have some knowledge before you begin negotiating. There are also many other things that you need to keep in mind while you are searching for your new home. But, the more that you know, it is more likely that you will end up with a great home at the end.

When you are applying for a mortgage loan, do not just look at the things that will be impacting you immediately. Try to look into the future and see how much the final cost will be. Also, always read the fine print in the paperwork. There may be clauses and other things that change the conditions without you knowing it. One thing that you may all of a sudden find is that the interest rate that you will be getting at the moment may not be the same one that you will be getting later on in your life.

Also you need to remember that home buying is different for everyone. The same techniques that your neighbor or parents may have used may not work out the same for you. But, one thing that you should always do is look at the house multiple times before you buy the home. Try to find anything that is broken or does not seem right and take pictures of it. This way when making your offer you can show why you think the house is worth the amount that you offered.

Also try to make an appointment with the seller of the home so they can give you a tour of the house. While you are on the tour with the seller try to ask specific questions about the house like why they are selling the house, what certain rooms were used for, their favorite parts of the house, and if they had any pets. These are the types of questions that may end up help you deciding if you actually want to purchase the home.

So, if you are looking for a new home just keep a positive attitude because sooner or later you will find a home that works for you and your family. Just do not get discouraged because it is a lot harder for an agent to work with a discouraged buyer because it makes their job harder for them. Good luck finding your new home.

Home buying is a dream endeavor for most people. It is your way to securing your family and future generations to have decent sheltering. In order to be successful at this venture, you have to be careful of your decisions. In any transaction, there are looming consequences which can lead to damaging your finances. Whether you are a first-time home buyer or looking for a new home, familiarizing yourself with common home buying mistakes can guide your decision making process.

Having the appropriate knowledge about things to avoid before entering any real estate transaction will prove to be beneficial for you and your finances. By knowing some of the common pitfalls explained below, you have better chances of avoiding them. Thus, your endeavor to finally own a home will be fruitful.

Doing the transaction on your own

It would be natural if you would like to cut down on your expenses due to the seemingly endless reports of economic difficulties. You may want to eliminate getting services from a real estate agent. Some investors would prefer to do their own property search and enter a transaction immediately. While these situations have truth in them, not everyone can be capable of properly dealing with sellers and lenders. Especially if this is your first time to undertake buying an estate, you need the expertise of an agent who has much more knowledge about buying policies, property details, market trends and other legalities concerning real estate transactions. However, note that upon hiring an agent, you are fully surrendering all the control to him. Your opinions and decisions will still critically matter.

Jumping into cheap homes

In line with wanting to accumulate savings whenever possible, you most probably want to get a house cheaper than standard market values. There is nothing wrong with this but some of these homes are priced as such because there are further attachments to them. For example, there are major repairs or expensive reconstruction needs before you could move into the house. In some cases, the seemingly affordable list price are actually exclusive of liens and property taxes, land area dispute, personally guaranteed mortgage loans or other legal issues.

Mortgage payment problems

Paying such dues is an intrinsic part of investing in real estate. Then again most home buyers may have become entirely enticed with the decrease in home prices, thus, neglecting the fact that mortgage rates are still very costly. They immediately buy a home without giving equal attention as to how they can responsibly keep up with further financial obligations involved in purchasing the property.  In the end, they will be confronted with multiple loans just so they can maintain ownership of their property, even worse, the property might end up into entering foreclosure.

Non-conduct of due diligence

In most transactions, conducting due diligence is usually neglected. Believing the listing pictures or trusting the seller’s word guaranteeing the house in good condition may not be enough. To ensure you are getting your hands at a sound investment, you must still visit the property and see for yourself whether its qualities are at par with your personal preferences. There have been numerous cases wherein buyers have found unfavorable conditions of the property late after the transaction has been closed. It would be too late to return the property to the former owner or too soon to be put back on the market again.

Overlooking deal requirements

There are various documents you will have to furnish the seller and/or lender before you can engage in any purchase deal. Some sellers and banks willingly provide a list of what documents the buyer has to accomplish. Unfortunately, there still occurs poor compliance to the requirements, which then causes the deal to be postponed or totally null and void. This may be due to miscommunication between the agent and the bank or seller, late submission or failure to acquire documents such as credit reports, income or bank statements within a specific timeframe.

Early money down

While putting down your earnest money deposit is a requirement for most purchase deals, you have to be careful in doing so. Some buyers abruptly give their deposit in order to fast-track the deal and make the property become theirs as soon as possible. The problem with this set up is that once you found another property with much lower pricing or has better features, it will take some time to get a refund. Thus, you will have a harder time to stabilize your finances. You might even end up acquiring loans unexpectedly to finance the other property.

Apart from knowing what things to avoid before and during a purchase deal, being watchful not to commit such mistakes will save you from an unproductive endeavor. Remember to vigilant in practicing the proper transaction steps to enjoy the benefits of buying and having a home of your own.

Buying a house is an important decision and needs a lot of time to settle for the house that you need and can afford. Most of you may not understand the loan process when getting a home mortgage. This is a good reason why a lot of you make the very common home buying mistakes. Read below to find out the common mistakes people make when buying a house and avoid them when you think of getting one of your own.

1. Booking a house before fixing credit: Most individuals think about credit after they have settled on a house. If you do have to take a home loan first find out how much credit you will be approved for. Get copies of your credit report and credit scores and find out how much you can borrow to buy a house. In the process you will have some time to correct your report if you see any errors or misrepresentations. You can dispute them and get them removed and improve your score a little bit before you apply for a home loan.
2. First time home buyers’ benefit: Most first time home buyers forget about this. These are typically state sponsored loans which offer better rates and terms than the private mortgage lenders. You may even compare rates with other private lenders for better results.
3. Not getting pre-approved: Do not confuse between ‘pre-qualified’ and ‘pre-approved’. Getting pre-approved means that you apply for a loan and get approval. This means that you submit tax returns, pay slips and other information that the lender might require. These documents will then be verified by the lender and if he thinks fit you will be approved the loan. However the real estate market looks such that only those who are pre-approved for a loan can get an edge over the other buyers.
4. Not enough research: Like any other kind of shopping, it isn’t wise that you look for mortgage rates only from one or two companies. Get rates from a few companies before you settle for a lender. Compare those rates well enough and see if they are offering what you were looking for and if you can pay back the money with the interest they are charging. If there is something you do not understand about the rate the lender has quoted, ask them.
5. Applying for more loan than required: First assess how much money you would actually need to buy the house. Don’t forget you would have your insurance, mortgage payments, property taxes, cost of repairing when you need to and other utility bills. You must be able to afford all of these, so you need to apply for a loan that your income can allow you to pay back. Most individuals make a mistake of applying for the maximum loan possible, thinking that their income will increase with time and they can pay back the loan along with the interest. But unfortunately, most of them get stuck with their loans and either opt for bankruptcy or a home loan modification. So, apply for only as much as you can afford.
6. Paying unnecessary fees: Beware, lenders can be tricky in this that they would inflate their profits by charging fees that may be unnecessary. Check with a mortgage broker and pay only those fees that are legitimate.
7. Forgetting about closing costs: When you close your deal and get your home loan you are expected to make certain payments like attorney fees, title insurance, pre-paid homeowners insurance, taxes and lender’s fees. This is what closing cost is and you need to keep money aside for this, but most home buyers forget about closing costs.
8. Not keeping money for unforeseen expenses: Don’t forget there might be any unforeseen expenses and you cannot spend all the money you have on just buying the house. So plan your budget accordingly and only after having considered every other aspect, go ahead with your home mortgage loan.

Austin Real Estate tumbled and touched the bottom-most point like any other real estate market of the United States. Property price was going down, and in the last two years this continuous drop in price caused many Austin realtors to panic. Many Austin homes were up for sale, but no buyers were looking at it, and home owners lost their hope. Hence, “Austin Homes for sale” placard was gathering dust, as no one cared about it anymore.

Then came February, and it brought the good news. Congress approved American Recovery and Reinvestment Act of 2009 sanctioned $8,000 tax credit to the first-time home buyers. Thanks to this legislation, the buying sentiment returned to the market.

Since then, the Austin real estate market has recovered a great deal. And the news that Austin will be among two cities to recover earliest from recession is adding up to the positive market sentiment in Austin.

Real estate studies

According to a new nation forecast by IHS Global Insight, Austin and its Texan cousin San Antonio will be the two cities that will be quickest in beating the economic recession.

According to the study conducted by the Brookings Institute, Austin is among the Top 20 best performing metropolitan area in the second quarter of 2009, as said the report published in Austin Business Journal.

In the second quarter, Austin has also been found leading the pack on many of the 9 metrics tracked by MetroMonitor for100 U.S. cities. These metrics included things like metropolitan products, and percentage change in housing price, etc.

There are many reports that coming that shares the same sentiment, which compelled me that I should find some data to match the prediction. Hence, I am going to provide here some hard data as evidence to corroborate with these and several other studies.

Austin Real Estate marketing data The Austin home sale in July 2009 has torched the mark set in July 2008, as reported by Austin Board of REALTORS. In July ’09, 2,069 homes were sold, where as in July ’08, 2,068 homes were sold. The median home price was also just 2% at $191,500 below the median home price in the same month last year. This data might not have looked positive in the bullish market, but given the state of Austin real estate in this year, this can be seen as a good recuperation. $508,810,549 was the total value of single-family properties sold in July 2009. In August 09, total house sold: 1706; average listing: $255,966; median listing: $195,750; average sold: $246,372; median sold: $190,000. In September 09, total house sold: 1639, 0.61% rise since September 08 (1629); average listing: $257,361, 0.69% rise since September 08 ($255,585); median listing: $194,900, 2.63% rise since September 08 ($189,900); average sold: $246,185, 0.04% rise since September 08 ($246,079); median sold: $188,500, 1.89% raise since September 08 ($185,000). Most of the U.S. cities are still struggling, but 17% of total homes that had “Austin Home for Sale” placard have found the buyers. To put it plainly, Austin has seen a 17% decline in home inventory, and witnessed increase in sale. The Brookings Institute’s study found out that the Austin house price is up by 2.4% over the past year while the US house price is down by 6.3% over the same period. Conclusion

As it is evident from the data given above that the predictions and forecasting made by national as well as Austin realtors are proving to be true. The Austin real estate market is heating up as the market sentiment is back into the buying mode. The confidence in the home owners are back, and now, no “Austin Home for Sale” placard is gathering dust.